Skip to main content
Subscribe
  • Login
  • My Account
  • Logout
  • Register For Free
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Blogs
    • AI
    • Deals
    • Layoff Tracker
    • HLTH 2024
    • Sponsored Content: Vital Signs Blog
  • Opinion
    • Letters
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • 40 Under 40
    • Best Places to Work in Healthcare
    • Healthcare Marketing Impact Awards
    • Innovators Awards
    • Diversity Leaders
    • Leading Women
    • Best in Business Awards
    • The 2030 Playbook Conference
    • Innovations in Patient Experience
    • Leading Women Conference & Awards Luncheon
    • Leadership Summit
    • Workforce Summit
    • Best Places to Work Awards Gala
    • Diversity Leaders Gala
    • - Looking Ahead to 2025
    • - Financial Growth
    • - Hospital of the Future
    • - Value Based Care
    • - Looking Ahead to 2026
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Sponsored Video Series - One on One
    • Sponsored Video Series - Checking In with Dan Peres
  • Data & Insights
    • Data & Insights Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Skilled Nursing Facilities
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
    • Sponsored Content
MENU
Breadcrumb
  1. Home
  2. Providers
July 12, 2017 12:00 AM

Trump may be backing off from plan to scale down 340B

Virgil Dickson
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Hospital lobbying groups say they're hearing President Donald Trump may be backing off plans to scale back a federal program that requires drugmakers to give discounted products to hospitals that treat a high number of poor patients.

    A proposed executive order on drug pricing from the Trump administration leaked late last month contained language that directed the HHS Secretary to find ways to reduce the size of the 340B program.

    Sales of drugs under the 340B discount program reached $16.2 billion last year, which was 34% higher than 2015 and accounted for 5% of the total US drug market.

    The program has been plagued by complaints that it served mostly hospitals with middle and high income patients. Trump proposal aimed to address these complaints to ensure only the neediest hospitals were participating in the program.

    The Affordable Care Act made new categories of hospitals eligible for 340B discounts including some children's hospitals, freestanding cancer hospitals, sole community hospitals, and rural referral centers. In 2015, federal regulators released guidance clarifying who was eligible for the program

    In recent days, government affairs staffers at both the American Hospital Association and America's Essential Hospitals, as well as other industry insiders, have heard that the 340B recommendation won't be included final drug pricing executive order whenever its released.

    None were sure why it was omitted, but they believe it's likely Trump would rather let Congress decide if there should be revisions to the program.

    Multiple requests for comment to the White House were not returned.

    Hospitals criticized the proposal, fearing it would kill a lifeline that's helped them deal with one of their most rapidly growing operational costs.

    "This could be devastating to many hospitals across the country that count on the 340B program to serve challenged populations," Paul Lee, senior partner at the consulting firm Strategic Health Care said. "Regulatory changes to 340B should not be made without meaningful input from the provider community . There is way to much at stake."

    A cadre of Democrats in Congress wrote to Trump in a June 23 letter asking to preserve the program.

    Their concern was for patients.

    "If, as reported, your administration scales back this program, more Americans of limited means will be forced to choose between health and other basic life necessities, like putting food on the table and a roof overhead for the family," the letter said.

    A hearing on oversight of the program is scheduled to take place July 18 in front of the House's Subcommittee on Oversight and Investigation.

    If Trump punts the issue to lawmakers, Henry Waxman, for one said he wouldn't be surprised. The former congressman for California and chairman of the consulting firm Waxman Strategies points out that the President's budget proposal calls for new legislation to reduce the cost of the the 340B program.

    Spokespeople for PHRMA and BIO, two pharmaceutical trade organizations that have voiced concern over the size of the 340B program declined to comment on the draft of the executive order or reports that the 340 passage had been killed.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    mh-20250509-retail-healthcare
    Big retail tried to disrupt healthcare—who is making a dent?
    mh-20250512-myPlace-Health-PACE
    Scan Group eyes PACE expansion as sole owner of myPlace Health
    Most Popular
    1
    Downside risk, upside payment highlight new CMS innovation agenda
    2
    UnitedHealth Group CEO Andrew Witty steps down
    3
    AI health risk assessments aim to boost Medicare Advantage pay
    4
    Why healthcare staffing companies are buying competitors
    5
    Docs set for Medicare pay hike under House GOP bill
    Sponsored Content
    Modern Healthcare A.M. Newsletter: Sign up to receive a comprehensive weekday morning newsletter designed for busy healthcare executives who need the latest and most important healthcare news and analysis.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Help Center
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2025. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HLTH 2024
      • Sponsored Content: Vital Signs Blog
    • Opinion
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • 40 Under 40
        • Best Places to Work in Healthcare
        • Healthcare Marketing Impact Awards
        • Innovators Awards
        • Diversity Leaders
        • Leading Women
        • Best in Business Awards
      • Conferences
        • The 2030 Playbook Conference
        • Innovations in Patient Experience
        • Leading Women Conference & Awards Luncheon
        • Leadership Summit
        • Workforce Summit
      • Galas
        • Best Places to Work Awards Gala
        • Diversity Leaders Gala
      • Virtual Briefings
        • - Looking Ahead to 2025
        • - Financial Growth
        • - Hospital of the Future
        • - Value Based Care
        • - Looking Ahead to 2026
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Skilled Nursing Facilities
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing
      • Sponsored Content